Mighty River Greed The question on the tip of everyone’s tongue is, “Should I buy shares in Mighty River Power?” Like children at a lolly scramble, thousands of prospective investors have rushed to pre-register, for fear of missing out if they don’t act quickly. Share prices are driven by fear and greed and the reaction to the sale of Mighty River Power shares is a prime example of emotional investor behaviour. U...

The Property Comeback Property statistics are clearly showing the start of next property cycle, with particular hot spots in Auckland and Christchurch. This is prompting investors who have been sitting on the sidelines to dust off their calculators and take a good look at the opportunities in the market. Low interest rates are one of the driving forces, along with net migration, the Christchurch rebuild, and the lack of p...

The Importance of Cash Flow Whether you are running a business or managing the household finances, cash flow is critical. The difference between cash coming in and cash going out in any given period of time is the net cash flow. If it is positive, your cash balances will increase and if it is negative, your cash balances will decrease. The easiest way to grasp the concept of cash flow is to think of a water tank. Imagine...

Start Saving with Two Simple Steps Kiwis are being urged to “Think, Shrink, Grow’ by the Commission for Financial Literacy and Retirement Income in their campaign to improve our money habits. We’ve heard that ‘Think’ means to set goals and plan ahead and ‘Shrink’ is all about getting rid of debt, especially ‘dumb’ debt. Once you have set your goals and tackled debt, it is time to ‘Grow’ your savings....

Managing Your Student Loan  For first year tertiary students, one of the most daunting challenges is how to get financial assistance without being burdened with a lifetime of debt. A student loan is inevitable for most students. Student loans are available for compulsory course fees, course related costs and living costs, subject to eligibility criteria. There is no interest charged if you are based in New Zealand and i...

Find your Personal Financial Flow  Getting yourself on the path to financial freedom is not just about getting your money sorted; it is about sorting your life as well. That is the premise of a newly released book by Canadian-Kiwi Amanda Morrall called Money Matters; Get your Life and $$$ Sorted (Penguin, 2013). By giving attention to your inner wealth and well-being as well as your finances, you will get the two areas w...

Seven Cures for a Lean Purse The principles of wealth creation haven’t changed since money was first invented. Some of the most insightful and inspirational books were written decades ago yet they are still relevant today. One of the most enduring classics is The Richest Man in Babylon by George S Clason, first published in 1926 and more recently published by Penguin. This book is a series of parables set in Babylon, w...

Invest in Yourself One of the best investments you can make in life is to invest in yourself. Being physically and mentally in good shape makes you happier and improves your chances of financial success. Think of the personal attributes of the most financially successful people you know. There is a correlation between financial success and personal qualities such as being smart, optimistic, mentally alert, active and soci...

How to Make a Fresh Start Holidays can very often prompt a desire for life changes ranging from a commitment to changing bad habits to major changes such as a career change, geographic relocation or change in relationship status. No doubt these changes stem from the opportunities holidays give to reflect on life and happiness. Turning the desire for change into reality is not always easy. After all, there are bills to pay...

Are you Afraid of Investing? There are only three things you can do with your money; you can spend it, save it or invest it. While everyone spends money, only a few manage to save and even fewer invest, other than through KiwiSaver. Of those who save well and manage to accumulate a nest egg, there are a number who leave their funds in a savings account because they are too afraid to invest. In doing so, they are missing o...